Private lending is the new norm.

• Alternative lenders issued 47.2% of non-agency loans in Q1, while banks only made up 23%, according to CBRE.
  

• As enormous amounts of CRE debt are coming due, private lenders will step in to fill in the gap caused by traditional banks’ stricter lending criteria.
  

• CLOs (Collateralized Loan Obligations) are experiencing the fastest growth, with $1.5B of these issued during Q1, compared with $700M in the last quarter of 2023. CLOs are below investment grade loans combined into bundles of 150-250 loans, of which investors purchases stakes (tranches).
  

• Such lenders are gaining in confidence, as $1T of CRE debt is set to mature this year according to MSCI, with many landlords having yet to refinance their assets.
  

• Putro says office loans are the most likely to require refinancing as many large, high LTV loans were issued in the past, and it is no secret that values are slumping.
  

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🏬 Retail News

• San Francisco’s city supervisors want to revitalize Union Square, the city’s shopping district, as vacancies amount to 20.6%, according to C&W.
  

• Bernard Arnault’s family office is set to buy a 25% stake in Value Retail, the company controlling Bicester, for £1.4B ($1.77B).

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🏭 Industrial News

• An oversupply of industrial properties in the Inland Empire is pushing rents and property values downward.
  

• Nonetheless, Amazon just signed a lease for a 1.2M SF Class A warehouse in the Inland Empire.
  

• Also, Stockbridge bought a 2-building industrial portfolio for $142M in the Inland Empire.

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🏘️ Multifamily News

• Rhode Island-based developer, A Cranston, plans to build a 30-story building in Providence, RI, as the market is under pressure.
  

• Ares Management closes South Florida’s largest deal of the year: 284 units in Boca Raton for $139.7M.
  

• Invesco sells a 359-unit D.C. apartment building at a 37% discount, for $129.8M.

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🏢 Office News

• NYC office owners and brokers are optimistic about the office market, looking forward to a recovery.
  

• At The Real Deal Forum, Comparato said “Office is really really bad. We see what is happening and the market is kind of ignoring it.”

The Energy and Utilities segment is experiencing a 96% increase in volume leased in Q1, compared to the previous quarter.

The most stable industry remains Food & Beverage, with a slight 6% increase QoQ.